Correlation Between MSP Recovery and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both MSP Recovery and Sabre Insurance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MSP Recovery and Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSP Recovery and Sabre Insurance Group, you can compare the effects of market volatilities on MSP Recovery and Sabre Insurance and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in MSP Recovery with a short position of Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSP Recovery and Sabre Insurance.
Diversification Opportunities for MSP Recovery and Sabre Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MSP and Sabre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MSP Recovery and Sabre Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Insurance Group and MSP Recovery is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on MSP Recovery are associated (or correlated) with Sabre Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Insurance Group has no effect on the direction of MSP Recovery i.e., MSP Recovery and Sabre Insurance go up and down completely randomly.
Pair Corralation between MSP Recovery and Sabre Insurance
If you would invest 10.00 in MSP Recovery on September 15, 2024 and sell it today you would lose (3.13) from holding MSP Recovery or give up 31.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
MSP Recovery vs. Sabre Insurance Group
Performance |
| Timeline |
| MSP Recovery |
| Sabre Insurance Group |
MSP Recovery and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSP Recovery and Sabre Insurance
The main advantage of trading using opposite MSP Recovery and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSP Recovery position performs unexpectedly, Sabre Insurance can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sabre Insurance will offset losses from the drop in Sabre Insurance's long position.| MSP Recovery vs. Sabre Insurance Group | MSP Recovery vs. Palomar Holdings | MSP Recovery vs. Assurant | MSP Recovery vs. Aegon NV ADR |
| Sabre Insurance vs. Insteel Industries | Sabre Insurance vs. Barrick Gold Corp | Sabre Insurance vs. Forsys Metals Corp | Sabre Insurance vs. Direct Line Insurance |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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